Improve the economy

Hapless Ben Bernanke, in an effort to save the unsaveable, continues to pour liquidity into the system.

Liquidity is the only thing that keeps the economy and the government from imploding.  It accomplishes nothing other than to “pretend and extend.” The economic debacle ahead cannot be avoided, only deferred. It provides those willing to understand more time to prepare. It also means most will be poorer in terms of purchasing power as a result.

The banking system is insolvent, headed for collapse. Bernanke cannot change this ending, only its timing. In the meantime, he destroys the savings and the standard of living of the middle class. His inflationary policies drive food costs up around the world. Many believe this pressure on food prices precipitated the riots in the poorer nations.

QE3 is coming because the political class has nothing left with which to escape the debacle. Regardless of whether it is announced or what it is called, this “field of dreams” strategy of “print it and they will spend” will not improve the economy. Few believe that myth anymore. The purpose is to stave off the inevitable.

Liquidity will continue to drive prices up and impoverish the middle class around the world. Unrest and rioting will be the response by the lower classes who will have difficulty affording food.

James Quinn provides comments on Bernanke and this policy:

The storyline being sold to you by Bernanke, his Wall Street masters, and their captured puppets in Washington DC is that deflation is the great bogeyman they must slay. They make these statements from their ivory jewel encrusted towers as the real people in the real world deal with reality. The reality since Ben Bernanke announced his QE2 policy in August 2010 is:

• Unleaded gas prices are up 45%.
• Heating oil prices are up 46%.
• Corn prices are up 71%.
• Soybean prices are up 26%.
• Rice prices are up 13%.
• Pork prices are up 31%.
• Beef prices are up 25%.
• Coffee prices are up 38%.
• Sugar prices are up 48%.
• Cotton prices are up 13%.
• Gold prices are up 42%.
• Silver prices are up 115%.
• Copper prices are up 23%.